Allied Bank Limited showed impressive earnings before tax of Rs 22.20 billion during CY14 as compared to Rs 14.76 billion in CY13, registering growth of 50%. However, profit after tax showed a moderate growth of 3% to Rs 15.01 billion in CY14 as compared to Rs 14.64 billion in CY13 owing to normalize effective taxation against previous year of tax reversal. Earning per share (EPS) as a result accounted for Rs 13.11 for CY14 as compared to Rs 12.79 for CY13. This growth is primarily emanated from higher net interest income and rise in non-interest income.
Net interest income; a big jump
Net interest Income (NII) during CY14 increased by 30% to reach Rs 28.18 billion due to better spread after investing in long term papers. Interest income surge by 24% to Rs 67.01 compared to Rs 54.22 billion hpw in CY13 mainly due to investments in PIBs. Conversely, Interest expense swell by 19% to Rs 38.81 in CY14 against Rs 21.67 billion in CY13 owing to increase in saving rate.
Supportive non-funded income; last but not the least
The non interest based income also played vital role by sharing its part as it posted growth of 32.6% during the year. An amount of Rs 12.73 billion are on board for CY14 against Rs 9.60 billion in CY13. Major portion is contributed by the gain booked in the form of sale of securities which mainly booked an amount of Rs 4.16 billion for CY14 as compared to 1.24 billion for CY13 showing an increase of 235%.